The long-run average cost curve of a natural monopoly
A) is positively sloped until it crosses the demand curve.
B) intersects the demand curve while it is negative sloped.
C) intersects the demand curve while it is positively sloped.
D) is the natural monopoly's supply curve.
E) is the same as the natural monopoly's demand curve.
B
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Suppose that the spot exchange rate for a foreign currency is equal to $120, while the interest rate in dollars is 2% and the interest rate in the foreign currency is 3%. What is the approximate forward rate that is consistent with this situation?
A) $115.56 B) $124.44 C) $118.77 D) None of the above.
In the one-period valuation model, the current stock price increases if
A) the expected sales price increases. B) the expected sales price falls. C) the required return increases. D) dividends are cut.
Economics is concerned with the trade-offs that emerge because of scarcity. The term "trade-offs" refers to
What will be an ideal response?
If demand is represented as Qd = 18 - 6P and supply is represented as Qs = 3 + 9P, the equilibrium price is
A. $1. B. $4. C. $7. D. $12.